The Monthly Update - September 2026

September’s Listing “Wall”

Manhattan (and Brooklyn), and I would venture to say most markets nationwide, are cyclical. In the Big Apple, there are two main selling seasons: spring and fall. Spring is defined as roughly March 1 to about June 15, when more apartments change hands on a weekly basis than at any other time of the year. In some cases, over 400 apartments a week go into contract during a typical spring market. However, the autumn/fall season is a little bit different. There are really only two main months to the fall season: September, the listing month, and October, the in-contract month. If a seller doesn’t go under contract by the end of October or early November, then the chances of finding a buyer during the impending holiday season are greatly diminished.

Many liken the September listing month to a “Wall of Listings.” For example, last August, 608 listings came on the market compared to 2,100 in September 2025—a 245% increase in about 30 days! This creates both pitfalls and opportunities for every property entering the post-Labor Day market. Each listing has to compete for the same buyer attention, the same saved-listing alerts, and the same first-impression window. The competition is fierce.

And when you look at the number of listings that come on the market in September, it really does look like a wall on a graph. I’ve included UrbanDigs’ version of this graph below:

View fullsize

There are many reasons for this massive listing dump in September. Properties that didn’t go into contract during the spring and early summer months usually come off the market for the dog days of summer. Sellers then recalibrate their listings for the fall market and relaunch after Labor Day weekend. Also, sellers who haven’t yet entered the market but missed the spring season release their properties after Labor Day. Meanwhile, buyers who have been looking all spring and summer find very little inventory by the end of August. Generally, inventory declines to seasonal lows at the end of August as the New York City exodus to the Hamptons, the Berkshires, upstate New York, and all over the world takes place during the last two to three weeks of the month. It’s uncanny. You can see it in the subways and see it on the streets. The city is extremely empty at the end of August. It’s very much a New York City thing. If you live in New York City, you see it every season.

But the city comes alive again in September. So how do sellers stand out in a crowded field vying for potential buyers? The obvious standouts are pricing, appearance, accessibility, and the willingness of sellers to pounce on offers as they come in during the first few days and weeks of September. Timing also matters. Sometimes it’s about the strategic timing of when you release your property in September. After Labor Day, there are major Jewish holidays and the start of both private and public schools to navigate. Dropping your listing on the market at a pinpointed time can help attract the right buyer at the right moment.

And for the buyers? The fall gives buyers more alternatives and temporarily reduces the competition around any one listing. However, new listings beget more buyers, and if sellers have priced their properties accordingly, buyers flock to those choice properties first—so be ready! Have your pre-approval letter or proof of funds at hand, and be aggressive with your offers on properties you like during the first few weeks of the fall market. If you’re prepared, you could walk away with the property of your dreams.

The fall market is short—roughly two months. It’s a mad scramble for sellers and buyers to sell and/or purchase their dream homes before the end of the year. However, this year inventory has been roughly 10% lower all season, so it remains to be seen how the 2026 fall listing dump will play out. And on the flip side, buyers have been putting roughly 10% more properties into contract over the first eight months of 2026, so there could be more competition for fewer listings this fall—but only time will tell. And you can always find out the latest on the Manhattan market with The Hoffman Team’s Weekly Manhattan Real Estate Update, which is posted on my blog and LinkedIn every Monday morning. Happy selling and shopping this fall!

---

Local Happenings

US Open

Till September 13, 2026

The 2026 US Open is in full swing at the USTA Billie Jean King National Tennis Center in Queens, bringing two weeks of world-class tennis and excitement to New York City. The tournament continues through September 13, as the sport’s biggest stars compete for one of tennis’s most prestigious titles.

Click HERE to follow the action, view the schedule, and learn more!

The 100th Feast of San Gennaro 2026

Little Italy’s biggest annual celebration is back for 11 days of Italian-American food, music, performances, religious traditions, and plenty of Mulberry Street chaos. The Feast of San Gennaro runs September 17 through September 27, with live entertainment every day, the Grand Procession, and more.

Click HERE to learn more!

---

Featured Listings

---

STAY CONNECTED

The Monthly Update - August 2026

MANHATTAN REAL ESTATE MARKET - THREE-MONTH SUMMARY

There has been so much press surrounding the recent Pied-à-Terre Tax and the overall state of the Manhattan real estate market. As a result, many of my clients have reached out with understandable concerns about their property values, taxes, and the direction of the market.

I wanted to take a step back and look at the Manhattan real estate market over the past three months as the current city administration implements new real estate taxes, continues to strengthen rent stabilization laws, and cracks down on landlords and slumlords. Rather than focus on headlines or politics, I wanted to summarize where we've been from a factual, data-driven perspective. My hope is that by looking at the numbers, we can gain a clearer understanding of where the Manhattan real estate market may be headed in the months ahead.

Looking back over the past three months, one theme has consistently defined the Manhattan real estate market: historically low inventory paired with remarkably resilient buyer demand.

Throughout the spring and into the early summer months, listing inventory remained well below normal levels, generally running 7% to 10% lower than the same time last year and below the five-year average. While inventory followed its typical seasonal pattern—building through the spring before beginning its descent into summer—it did so from a much lower starting point. Buyers not only had fewer listings to choose from, but roughly 40% to 44% of the market consisted of properties that had been listed for more than 90 days, leaving relatively few fresh, well-priced opportunities available.

Despite those supply constraints, buyer demand remained surprisingly strong. After a sluggish start in March, contract activity steadily improved beginning in early April and remained elevated throughout most of the spring. Rather than seeing the typical spike followed by a quick decline, the market produced a consistent stream of buyers putting properties under contract week after week. The rolling 30-day pace frequently stayed around or above 1,100 signed contracts, often running 8% to 15% ahead of last year's pace, before finally beginning its expected seasonal slowdown in July.

One of the more interesting stories of the spring was that strong transaction volume did not translate into stronger pricing. Manhattan continues to be a market where prices have largely moved sideways for years. The lesson remained the same throughout the season: price is king. Properly priced properties continued to attract buyers and sell quickly, while aspirational pricing often resulted in listings lingering on the market despite historically tight inventory.

The luxury market also continued to outperform expectations. Weekly contract totals regularly met or exceeded historical averages, with the $4 million-plus market showing impressive consistency throughout the spring. Trophy properties at $10 million and above remained active, although activity varied from week to week. At the same time, one emerging trend became increasingly apparent: the shortage of new development inventory. Rising construction costs, expensive land, higher financing costs, and fewer new projects have created one of the tightest new development markets Manhattan has seen in years.

As we moved into the summer months, the market began behaving much as it typically does seasonally. Listing inventory started its annual decline as sellers either delayed bringing properties to market or removed unsold listings in preparation for the fall season. Contract activity also began to ease, although it continued to compare favorably with historical averages and, in many weeks, remained ahead of last year's pace.

Overall, the past three months painted the picture of a Manhattan market that proved healthier than many expected. Tight inventory continued to define market conditions, buyer demand remained resilient despite limited choices, and the luxury sector continued to perform well. Most importantly, the market once again demonstrated that while inventory may be scarce, buyers remain active. If there was one lesson reinforced over the past quarter, it's this: properly priced properties continue to sell, while aspirational pricing continues to sit on the sidelines.

If history is any guide, the market should continue its slow but steady path toward an even healthier marketplace in the months ahead. Of course, only time will tell. But if the market were to follow the media headlines, we'd be looking at armageddon in the proverbial streets of Manhattan—and probably one of the best buying opportunities in years. :-)

No matter where the market goes from here, my opinion remains the same: the Manhattan real estate market has proven to be remarkably resilient, and I expect that resilience to continue.

---

Local Happenings

US OPEN

August 24, 2026

The 2026 US Open kicks off August 24 with Fan Week and qualifying rounds, ahead of the main draw. Gates open early, with qualifying matches for men's and women's singles plus mixed doubles running through the week at the National Tennis Center in Queens.

Learn More

SUMMER STREETS

August 1, 2026

Summer Streets is an annual celebration of New York City's most valuable public space – our streets. On select summer Saturdays, the city will open its streets to walkers, bikers, runners, and performers. Discover a wealth of free cultural programs, performances, fitness classes, interactive art, giveaways, and more.

Learn More

---

Featured Listings

---

STAY CONNECTED

---

HAVE QUESTIONS?

The Monthly Update - July 2026

New York City’s Pied-à-Terre Tax Is Now in Full Effect

Starting today, the highly anticipated—and highly scrutinized—New York City Pied-à-Terre Tax is officially in effect.

I'm going to try not to make this newsletter too technical and instead provide a broad overview of the city's newest property tax.

Many people don't realize that this tax was initially proposed more than 10 years ago by a group of state legislators in Albany, but it failed to gain enough traction to pass. It resurfaced again in 2019 and was supported by then-Mayor Bill de Blasio and former Governor Andrew Cuomo, but intense opposition from real estate developers ultimately led to it being stripped from the state budget.

Finally, in 2026, with the support of the current mayor and governor, the legislation passed and goes into effect today.

So, what exactly is it?

New York State has enacted a phased annual tax on certain high-value New York City residential properties that are not used as primary residences. The tax applies to one-, two-, and three-family homes, condominiums, and cooperative apartments. I’ve included a graph below to help you understand the costs. 

The tax will be implemented in phases. Phase One begins on July 1, 2026, and runs through June 30, 2028. Phase Two begins in July 2028 and continues through June 30, 2031. The tax is currently scheduled to remain in effect for five years and will expire after June 30, 2031, unless it is extended or replaced. I've included a chart below to help explain the various phases and associated costs.

The reason the city and state created a two-phase system is, in part, because there is significant uncertainty surrounding the true market value of many properties. For example, I have a client who owns an apartment on Central Park South that he purchased for roughly $2.5 million. Over the years, he has made substantial improvements, and today the property is estimated to be worth between $4.25 million and $4.5 million. Yet if you look at the city's records, the property's estimated market value is listed at just over $650,000.

Because municipal assessments often bear little resemblance to actual market values, lawmakers needed a transitional period to create a more accurate valuation framework. During Phase One, the city will broadly apply the Pied-à-Terre tax to qualifying non-primary residences valued at $1 million and above. Over the following years, officials will refine their valuation methods and develop a more precise system for determining market value.

How those valuations will ultimately be calculated remains highly debated. However, the intent of Phase Two is to narrow the scope of the tax so that it primarily applies to properties with market values of $5 million and above. As the program evolves, property owners should expect additional guidance and clarification from the city and state regarding valuation methodologies and tax obligations. 

Here’s the chart to help explain the various phases and associated costs.

View fullsize

How has this new tax affected sales in the short term?

In short, it hasn't.

The 2026 market has been a solid rebound market following the lows of 2023, the gradual recovery of 2024, and the continued improvement seen in 2025. Even though inventory has remained roughly 10% lower than this time last year for much of the season, the overall market has experienced between 7% and 10% growth in contract signings.

The luxury market, in particular, has significantly outperformed the broader market, with some of the largest sales in New York City real estate history occurring over the last several months.

Many pundits predicted that this tax would drive ultra-high-net-worth buyers out of New York City and drain demand for luxury properties. So far, that simply has not happened. Of course, it is still far too early to fully understand the long-term effects of this tax. Those impacts may not be known for months—or even years—to come.

However, much of the pre-tax rhetoric and media coverage has proven to be overstated. There has been no mass exodus of wealthy residents from New York City. In fact, the strength of the luxury market over the past six months and beyond serves as further proof that New York will continue to attract all types of buyers, including high-net-worth individuals.

If you would like more information about the Pied-à-Terre Tax and how it may affect your property, please feel free to reach out for a comprehensive analysis of your home and whether it may qualify under the new rules.

The Hoffman Team is dedicated to educating our clients on all aspects of the real estate market, including its newest twists and turns involving property taxes and related legislation. We look forward to helping you navigate and understand these nuances in the months and years ahead.

---

THE HOFFMAN TEAM IN THE NEWS

We’re incredibly honored to share that The Hoffman Team has been recognized by The Wall Street Journal and RealTrends as the #10 real estate team in New York City, #17 in New York State, and #283 in the nation for 2025, based on closed sales volume.

This recognition wouldn't be possible without the trust, loyalty, and support of our amazing clients, customers, friends, and referral partners. Whether you've bought, sold, referred someone our way, or simply championed our business, thank you. Your confidence in our team is something we never take for granted.

Every transaction represents far more than a sale—it's a relationship, a milestone, and an opportunity to guide someone through one of life's biggest decisions. We're grateful to be part of those journeys and remain committed to delivering the level of service that earned your trust in the first place. Thank you for being part of our success. We couldn't have reached this milestone without you, and we're excited for what's ahead.

---

LOCAL HAPPENINGS

FIFA World Cup 2026 Watch Party

July 19th, 2026

Gather on Central Park's iconic Great Lawn for the largest FIFA World Cup 2026™ Final watch party in the world, featuring giant screens, live entertainment, and the historic FIFA World Cup™ Final Halftime Show.

Learn More

Shakespeare in the Park - The Winter's Tale

July 25th, 2026

Tony Award-winning director Daniel Sullivan returns to Free Shakespeare in the Park with a spellbinding new production of THE WINTER’S TALE.

Learn More

---

STAY CONNECTED

The Monthly Update - June 2026

10% Down / 10% Up (Well, about 8%)

It’s been a roller coaster of a year in the Manhattan (and Brooklyn) real estate market. A sluggish start to the year—with very low inventory and seemingly picky buyers—gave way to the beginning of the 2026 spring selling season, which initially fell flat on its face. In New York City, the strongest time of year to sell real estate is generally from March 1 through about June 15. However, this year’s kickoff in March was a dud due to geoeconomic concerns, geopolitical turmoil, and higher interest rates. But by April, many of those fears began to settle, and the market found a surprisingly steady rhythm, leading to almost a 20% swing between inventory supply and the in-contract market by May.

Inventory has struggled all season, and last month was no exception. Hovering roughly 8% to 10% below last year’s levels, overall supply never really had a chance to get going. In a typical spring market, inventory peaks around May 15, give or take, with the five-year average ranging between roughly 7,500 and 7,800 listings in Manhattan. This year, however, supply settled closer to 6,700 listings—roughly 10% below normal peak levels.

And even that number is misleading. Buyers really only have a fraction of the inventory to choose from because a significant portion of the market is made up of “stale listings”—properties that are mispriced and have been sitting on the market for 90-plus days. That stale inventory now represents nearly half of all active listings. As a result, buyers have spent most of the season struggling to find fresh inventory.

Meanwhile, sellers who priced their properties correctly—or at least in line with what buyers perceived as fair market value—have enjoyed serious interest and, in some cases, bidding wars. The strongest and freshest listings continue to move quickly. Roughly the top 1,700 listings that hit the market go into contract within the first 30 days. In March alone, 16% of all listings went into contract during that initial 30-day period, leaving the remaining inventory to struggle and slowly discover the price point buyers would ultimately accept.

That brings us to the in-contract market, which is where we’ve seen the real surprise. Contract activity has consistently remained about 8% to 10% higher year-over-year since roughly the second week of April. At the time of this newsletter, the gain sits closer to 8%, though it climbed as high as 10% throughout April and May and appears poised to continue into June—which is somewhat unusual for this time of year.

Agents, mortgage lenders/bankers, and real estate attorneys do expect the in-contract market to eventually taper off, as it naturally does heading into summer. However, many professionals in the industry believe this spring market may still have some legs because March’s weak start delayed a portion of the normal seasonal activity. Only time will tell.

So what does all this mean? Low inventory combined with stronger demand naturally raises the question: could Manhattan finally see a meaningful upward correction in pricing after nearly 10 years of stagnation? In short—probably not, at least not broadly across the market.

Today’s demand is highly selective. Buyers are aggressively pursuing only the best-positioned properties—those that are renovated, fresh to market, and priced intelligently. When that combination exists, buyers are eager to move quickly, and on occasion, we’re even seeing bidding wars that feel reminiscent of 2015 all over again. But it’s important to remember: this is not 2015. Sellers who think it is are often left behind in today’s market cycle.

The current “tempered frenzy” is being driven by several factors: a brutally competitive rental market pushing renters toward ownership, a lack of quality inventory, and buyers reacting quickly when they finally see value. But perhaps the biggest reason is something more fundamental—New York will always be New York.

This city remains one of the most transitory and aspirational places in the world. People continue to come here to build careers, chase dreams, create wealth, and reinvent themselves. No matter who the mayor is, no matter the threat of higher taxes, higher interest rates, geopolitical uncertainty, or negative headlines, New York City continues to attract ambitious people who want to make it here. And for those who have already made it, there will always be a new generation ready to take the baton and leave their own mark on the Big Apple.

---

LOCAL HAPPENINGS

Sunset Soirée on Governors Island

June 9th

Take a ferry to the Governors Island Sunset Soirée for tropical drinks, seafood, and live DJ sets at Island Oyster with stunning Manhattan skyline views — all while supporting the island’s public spaces, art, and climate initiatives. Click HERE to learn more.

Tribeca Film Festival

June 3rd - June 15th

The Tribeca Festival returns to NYC this June with premieres, screenings, music, and immersive events, bringing bold creative voices and vibrant cultural energy to downtown Manhattan.

Click HERE to learn more.

---

FEATURED LISTINGS

---

STAY CONNECTED

The Monthly Update - May 2026

How to Price in New York City Real Estate

Since around 2015, when sellers were enjoying one of the strongest sales markets Manhattan has ever seen, the overall trajectory of real estate has been flat to slightly down. That shift has made pricing more important than ever. That’s not to say you shouldn’t have great photography, strong marketing across every platform, and consistent open houses so buyers and brokers know your property is available—but pricing is the single most important marketing tool. It determines whether a property sells… or sits.

Unlike the stock market, where price discovery happens in seconds, real estate can take weeks or even months to validate a listing price—and mistakes can be expensive. Many sellers believe they can “list anywhere” and find the right buyer, but that’s a misconception. Price is the catalyst. Using it correctly to generate interest and drive offers is the most critical factor in selling in New York City.

Recent analysis of Manhattan condos tells the story. Most listings sell at an average of about 7% below their asking price. However, when a property is priced in line with the market, it typically sells at just under 3% below ask. And when listings fail to sell and linger, they can ultimately transact at 18% below perceived market value. In other words, properties eventually align with the market—and aspirational pricing often becomes disqualification in disguise. There’s also a psychological component. Listings that sit too long become labeled as “stale.” When there are no inquiries, no offers, and empty open houses, both sellers and buyers begin to wonder, “What’s wrong with this property?” That perception can be hard to overcome.

It’s important for sellers to recognize that buyers are the true experts in the market. They have real skin in the game and access to all the tools available. More importantly, they are physically touring comparable properties and evaluating them in real time. If a property is mispriced, buyers immediately recognize it in the context of its competition—and move on.

Everything comes back to price. Price determines activity, activity determines offers, and offers determine success. If everything is aligned, this process should begin to take shape within 30 to 45 days of being on the market.

The broader market climate also plays a role. In a strong seller’s market, there’s a bit more room for aspirational pricing. But in today’s environment—which has been more balanced or even buyer-leaning for the better part of the last decade—precision matters more than optimism. Sellers need to understand current pricing trends and position their property accordingly.

Timing is another critical factor. Historically, the majority of transactions occur between March 1 and June 15, more than any other time of year. The market tends to cool from mid-July through August, then picks up again after Labor Day. That said, even timing must be viewed through the lens of current conditions. For example, what is typically a strong spring kickoff around March 1 can be delayed by external factors like political uncertainty, rising interest rates, or global economic concerns. In some years, momentum doesn’t truly begin until mid-April. Sellers need to be aware of both seasonality and current market dynamics when deciding when to launch.

If a property misses the mark on pricing, timely adjustments are critical. Listings that are priced correctly and sell within the first 30 days often have little to no negotiability. Between 30 and 60 days, that gap widens slightly to around 2%. Between 60 and 90 days, it can reach 5%, and between 90 and 120 days, closer to 7%. Beyond 120 days, discounts of 10% or more from the original asking price are not uncommon. That’s why it’s so important to adjust quickly—ideally within the first 30 days—so the listing can still benefit from the momentum of being “new” to the market. A well-timed price adjustment can re-engage buyers and reposition the property with a refreshed sense of value.

Ultimately, this is what brokers try to convey to their sellers. The goal is aligned: to achieve the highest price in the shortest amount of time. Selling within 30 days is not a negative outcome—it’s often where the strongest offers live. Mispricing, on the other hand, compounds over time, and the market will always correct it.

You can’t force the market—but you can absolutely engineer the right outcome through pricing.

Sourced from: John Walkup for Forbes

---

Local Happenings

Frieze

New York

May 13-17

New York’s most influential art fair returns to The Shed, drawing collectors, creatives, and downtown energy. Expect openings, fashionable crowds, and a packed social calendar.

Click here to learn more!.

Ninth Avenue Food Festival

MAY 16-17

Hell’s Kitchen mile-long open-air feast, expect global street food, local vendors, and a lively block-party atmosphere along Ninth Avenue (42nd–57th Streets).

Click here to learn more!

---

Featured Listings

---

Stay Connected

The Monthly Update - April 2026

Manhattan Real Estate Market – Q1 Overview

The first quarter of the year has unfolded largely in line with seasonal expectations, but with several notable dynamics shaping the market—most prominently tight inventory, resilient (but picky) buyer demand, and a strong luxury sector.

On the supply side, Manhattan entered the year from a historically low starting point. Inventory declined sharply through late December and early January, at one point dipping below the 5,000 listing threshold, a level not seen in several years. Since then, supply has begun its typical seasonal rebuild, gradually climbing back into the mid-5,000 range. However, despite this upward trend, overall inventory remains consistently 5% to 10% below prior-year levels and below the five-year average for this time of year. While new listings have started to come online, the pace has been uneven, with some “choppiness” in weekly releases. As a result, the market continues to operate in a constrained inventory environment heading into the spring season.

On the demand side, the in-contract market followed its usual winter slowdown before gaining traction through February and into March. The rolling 30-day pace of buyer activity rebounded meaningfully from its January lows, with contract signings frequently reaching the 200–250 per week range, and in some cases exceeding prior-year weekly levels. While overall demand has, at times, trailed last year’s pace, the trend line is clearly upward. Notably, several strong weekly surges suggest pent-up demand—likely driven by earlier weather disruptions and a lack of available inventory. At the same time, tight supply has begun to act as a limiting factor, preventing contract activity from fully accelerating to peak spring levels. As inventory builds, this constraint may ease, allowing demand to express itself more fully.

The luxury market ($4M+) has been a standout performer throughout the quarter. Weekly contract volume has remained robust, often ranging between 30 and 40+ deals, with multiple weeks exceeding historical norms. Activity at the $10M+ level has been particularly strong, including several weeks with double-digit “trophy” transactions. February saw a meaningful increase in total dollar volume, driven by higher-priced deals rather than just transaction count. New development has played a critical role in this segment, with projects such as 1122 Madison demonstrating strong absorption, multiple contracts signed off floorplans, and even upward price adjustments. Despite broader macroeconomic headwinds—including rising interest rates, geopolitical tensions, and equity market volatility—the luxury sector has shown remarkable resilience and pricing power.

Key Takeaways

Overall, the Manhattan market enters the spring season with a tight but improving supply backdrop, steadily strengthening demand, and a highly active luxury segment. The primary variable to watch in the coming weeks will be the pace at which new inventory comes to market. If supply accelerates as expected, it should unlock additional transaction volume and support a more active and competitive spring market. If not, continued inventory constraints may temper the full potential of buyer demand.

In short, the foundation for a strong spring market is in place—but its ultimate strength will depend on whether supply can catch up to demand.

---

Local Happenings

Hanami Nights: Brooklyn Botanic

April 21st–24th

Evening access to the garden during peak cherry blossom season, featuring illuminated trees and a serene spring atmosphere in the heart of Brooklyn.

Click HERE to learn more!

New York Yankees Home Opener

April 3rd

Kick off baseball season in the Bronx as the Yankees return home, bringing energy, tradition, and one of NYC’s most iconic game-day experiences.

Click HERE to learn more!

---

Featured Listings

---

Stay Connected

The Monthly Update - March 2026

Manhattan’s Infamous Co-op — Understanding the Maintenance (HOA) Structure

Manhattan’s cooperative, or co-op, is the largest category of apartment you can purchase in New York City, making up roughly 60 to 65 percent of all purchasable units. In many ways, buying a co-op is unavoidable if you are in the market for Manhattan real estate, and even much of Brooklyn. Unlike a condominium, when you purchase a co-op you are not technically buying real property. Instead, you are purchasing shares in a private corporation along with a proprietary lease that gives you the right to occupy a specific apartment. This ownership structure can feel confusing at first, but it dates back to the wave of rental-to-co-op conversions that took place decades ago. It also means that a co-op board has the authority to approve or reject prospective buyers, making the process more involved than a typical condo purchase.

The monthly “maintenance” in a co-op functions similarly to what many people think of as HOA fees, but it is much more comprehensive. Maintenance typically includes property taxes allocated to your shares, heat, hot water, building staff and payroll, and the managing agent who oversees the day-to-day operations of the building. Because so many expenses are bundled into one number, maintenance can appear high compared to a condo’s common charges, but you are paying for far more than just building upkeep.

One of the biggest drivers of maintenance is the number of shares assigned to each apartment when the co-op was first formed. Share allocation was determined by factors such as apartment size, floor level, views, outdoor space, layout, and even unique quirks. Those allocations were often set decades ago and still determine how much each unit pays today. Apartments on higher floors with better views or more desirable layouts typically carry more shares, which translates into higher monthly maintenance. Whether that math still feels logical today or not, it remains the primary reason why some units have significantly higher fees than others.

So what qualifies as “high” maintenance? The answer depends entirely on context. A typical Manhattan studio might have maintenance between roughly $900 and $1,300 per month, but that number can vary widely depending on the building and its services. In larger, more prestigious co-ops, especially on avenues like Park or Central Park West, the numbers rise quickly. For larger apartments, maintenance becomes even less predictable. A four-bedroom co-op might carry monthly maintenance in the high $8,000 range or climb to $16,000 or more. Importantly, maintenance does not scale in a straight line with size. A three-bedroom does not necessarily pay three times what a studio pays, because the share allocation and building structure drive the cost more than simple square footage.

The most effective way to determine whether a maintenance number is high is to compare the apartment to similar units in similar buildings. A two-bedroom, two-bath co-op on a high floor with white-glove service, a live-in superintendent, and strong amenities must be evaluated against other apartments with those same characteristics. Comparing it to a lower-floor unit, a non-doorman building, or a property with fewer services will lead to misleading conclusions. Maintenance varies dramatically based on services, staffing, taxes, and legacy share allocations, so context is everything.

It is also important to understand that high maintenance does not automatically mean a bad deal. In many cases, it reflects a well-run building with strong staffing, robust services, and properly funded reserves. Conversely, very low maintenance can sometimes indicate fewer amenities, fewer shares assigned to the unit, or a building that has deferred necessary increases to cover rising costs and capital improvements. Rather than asking whether the maintenance is too high, a more accurate question is where that maintenance falls within the range for comparable apartments. Knowing whether a unit sits above, below, or within the median for its peer group provides meaningful insight.

Co-op maintenance can seem shocking at first glance, particularly for larger apartments or those on higher floors. But once you understand the context—shares, services, building quality, and comparable units—it becomes much easier to evaluate. In many cases, what appears high is simply the result of legacy share structures and full-service living. Understanding that framework allows buyers to make informed decisions and avoids the sticker shock that often comes with encountering co-op math for the first time.

At The Hoffman Team, we’ve been selling co-op apartments for over 20 years, and many of us on the team are co-op owners ourselves. We understand firsthand the value that co-op living can offer, as well as the nuances of maintenance and how to evaluate it properly. If you ever have questions about co-op maintenance—or about your own building—we’re always here to help. We’re just a phone call away.

Sourced from: John Walkup, Forbes

---

Local Happenings

New York City

St. Patrick’s Day Parade

March 17, 2026

One of NYC’s oldest cultural traditions, this parade down Fifth Avenue honors Irish heritage with marching bands, dancers, and thousands of participants. It’s a lively, quintessential city-wide celebration perfect for community engagement. Click HERE to learn more!

Big East Men’s Basketball Tournament

March 11–14, 2026

Held at Madison Square Garden, this high-stakes college basketball tournament brings intense competition and lively crowds to Midtown Manhattan. It’s a standout sporting event and great draw during mid-month. Click HERE to learn more!

---

Featured Listings

---

Stay Connected

The Monthly Update - February 2026

Looking Ahead to 2026: Market Insights, Predictions & Possibilities

Before we dive into 2026 predictions, let’s set the stage. The Manhattan and Brooklyn markets hit what many consider a post-COVID floor in 2023, after the steep correction triggered by the summer 2022 interest rate spike. In 2024, the market began to rebound. Then came 2025—showing modest growth on top of that recovery. So here we are in 2026: a year that begins with both uncertainty and opportunity, and the potential for measured revival. Buyers remain cautious, especially around pricing, and sellers—particularly in Manhattan—continue to show some resistance, though perhaps with a slightly more congenial tone. If the market takes the right cues, 2026 could be a touch better than 2025.

As John Walkup of UrbanDigs recently noted in Forbes, this year may have less to do with rate cuts, Wall Street, or rental trends, and more to do with how individual buyers and sellers view the market. Let’s take a closer look at three major themes that could shape the year ahead.

Interest Rates

It’s widely assumed that falling interest rates will spark a buyer frenzy. But that’s only true if the rate cuts come alongside broader economic strength. If lower rates are paired with economic weakness, recession fears, or macro uncertainty, buyers may still sit on the sidelines. Also, according to Realtor.com, over 70% of U.S. mortgages are locked in below 5%, and 52% are below 4%, making many homeowners unwilling to sell and give up their low-rate financing. So even if rates decline, we may still see limited inventory—a “frozen seller effect”—where few are willing to trade up or down. In other words, while rate cuts might seem like a golden ticket, they’ll only move the needle if combined with easing inflation, stable employment, and renewed buyer confidence. It will take more than just monetary policy to meaningfully shift the needle in NYC.

Pricing & Seasonal Timing

In today’s market, correct pricing matters more than ever. If a property is priced right—and hits the market at the right time—it has a strong chance of selling. With buyer fatigue and budget sensitivity still lingering, sellers will need to adjust expectations and price and list their home at the right time. Expect most deals to happen in two distinct windows: spring (March through early June) and fall (late September through early November). Outside of those seasons, listings may sit idle unless priced aggressively. The market is active—but only at the right price point. Manhattan and Brooklyn haven’t seen sustained momentum in several years, and even though rents remain at all-time highs, many buyers are still waiting on the sidelines due to affordability concerns.

The Return of the Unrenovated Co-op

Affordability challenges could bring unrenovated co-ops back into favor. For buyers who are priced out of newer, turnkey homes, older properties—often with 1980s kitchens and original details—could offer a path to ownership at a lower entry price. While these homes may require renovations, they also offer flexibility: buyers can update over time, room by room, as budgets allow. After years of a market dominated by turnkey demand, 2026 might mark a shift toward value-driven purchases—especially among buyers who are more patient, budget-conscious, and renovation-inclined.

In Conclusion

These are three trends to watch as we enter the 2026 market. Of course, if you have any questions about Manhattan or Brooklyn real estate, I’m always happy to chat. After 24 years of successful sales in NYC, with 89 closed transactions last year and closing 2205 with another 25 properties currently under contract, The Hoffman Team is ready to help you navigate the market—no matter what 2026 brings.

Wishing you a great month ahead. Let’s see what this next chapter holds. 

---

Real Estate in the News

Real Estate Giant Compass Closes $1.6 Billion Merger to Become Worlds Largest Broker

"We are pleased with the strong support from our and Anywhere's stockholders in approving this transaction," said Compass founder and CEO Robert Reffkin. "Today's outcome reflects confidence in our shared vision to empower real estate professionals with everything they need to grow their business and better serve their clients."

Courtesy of Realtor.com

---

Local Happenings

NYC Restaurant Week (Winter 2026)

NYC Restaurant Week returns with discounted prix-fixe menus at hundreds of participating restaurants across the city. It’s a delicious way to spotlight the city’s culinary diversity from fine dining to neighborhood favorites.

Click HERE to learn more!

Westminster Kennel Club Dog Show

One of New York’s longest-running spectacles returns with canine competition at Madison Square Garden and Javits Center. The 150th anniversary edition brings elite dog breeds and show events that delight families and animal lovers.

Click HERE to learn more!

---

Featured Listings

---

Stay Connected

The Monthly Update - January 2026

Here’s What Happened in 2025

Manhattan and Brooklyn entered 2025 with a wide range of expectations. Looking back over the last few years that brought us to this point, many believe that 2023 marked the market’s post-COVID rebound floor, following the sharp correction caused by the interest rate spike in the summer of 2022. From that base, both the Manhattan and Brooklyn real estate markets began their climb back—first through a year of stabilization and recovery in 2024, and then with hopes for measured growth in 2025.

In some regards, that prediction proved accurate. As 2025 began, it was positioned as a year of growth—though what ultimately followed was less of a boom and more of a steady return to sustainable activity. While several metrics reflected improvement, the big jolt came early in the year with what became known as “Liberation Day”—the federal government’s sudden decision to reinstate tariffs. That announcement shocked the market, slowed momentum, and created widespread uncertainty. Still, in the months that followed, both the Manhattan and Brooklyn markets gradually regained their footing, stabilizing and regaining traction as the year progressed.

Another major development was the FARE Act, which went into effect in June 2025. Intended to reduce rental prices by requiring landlords to pay the broker fee instead of the tenant, the policy ultimately failed to deliver on its promise. In Brooklyn, rents remained near record highs, hovering around $3,700 to $3,800 per month. In Manhattan, they climbed even higher, ranging from $4,500 to $4,700 per month. Rather than absorbing the cost, landlords largely passed the broker fee along to tenants by raising rent prices. Most brokers agree that the FARE Act changed the mechanics of how deals were structured—but not the actual economics. In hindsight, it reallocated costs without creating meaningful affordability.

Inventory across both boroughs remained within historical norms in 2025. From January through November, Manhattan’s listing inventory rose by about 4% year-over-year. Brooklyn saw a similar increase in overall supply, but conditions remained and seemed tighter for buyers. In many neighborhoods across Brooklyn, well-priced listings attracted multiple offers, leaving buyers frustrated by limited options and strong competition. The contrast between the two boroughs was clear: while Manhattan gradually regained its footing, Brooklyn continued to feel like a seller’s market throughout much of the year.

Contract activity continues to tell a story of recovery—particularly in Manhattan. The total number of properties put into contract was up nearly 3% year-over-year, and during the peak months of the 2025 selling season, activity surged by as much as 10%. Renovated, well-priced listings were especially sought after and moved quickly, underscoring the importance of condition and pricing in the 2025 market.

The luxury sector in Manhattan further reinforced the broader trend of recovery in 2025. Properties priced at $4 million and above saw a meaningful rebound compared to 2024. Year-to-date, 1,436 luxury contracts were signed—an 11% increase year-over-year. The total luxury dollar volume reached approximately $1.977 billion, up sharply from $1.163 billion in 2024.

Luxury buyers continued to strongly favor condos over co-ops, with a roughly 3:1 ratio, highlighting the ongoing demand for flexibility, newer construction, and fewer restrictions—a trend consistent with recent years. But perhaps the most powerful driver behind the luxury market’s resurgence was pricing, which was approximately 4% lower than the prior year. This value proposition helped reignite demand and bring lux-market buyers off the sidelines.

Once again, Manhattan’s luxury market outperformed expectations, managing to thrive in spite of economic headwinds, tariff-related concerns, political uncertainty, and broader macro pressures. It will be especially interesting to watch how ultra-high-net-worth individuals and billion-dollar buyers continue to engage with Manhattan real estate as we head into 2026.

Brooklyn, by contrast, saw contract activity dip slightly, down 1.3% year-over-year, as some buyers stepped to the sidelines amid tighter supply, elevated pricing, and increased competition. Even so, demand remains resilient, especially in core neighborhoods where quality inventory continues to attract strong interest.

Despite the early disruption from “Liberation Day,” 2025 proved to be a resilient year—especially for Manhattan. The market’s ability to regain momentum after a policy shock speaks to the underlying strength of buyer demand. Still, it’s hard not to wonder how much stronger the year might have been had the tariffs not been reintroduced. Even with that headwind, the year finished with more contract activity than 2024, and the market showed signs of renewed health across both boroughs.

Looking ahead to 2026, the big question is: will the growth continue? If 2025 was a moderate growth year, will 2026 bring further gains—or will there be another unexpected shift, like "Liberation Day," that alters the landscape? Only time will tell. The first few weeks of the January 2026 selling season should offer a valuable glimpse into what’s ahead, as sellers begin to position their listings and buyers decide whether to jump back into the market.

Sources: Donna Olshan/The NYC Luxury Market Report and John Walkup/Forbes 

---

Local Happenings

Broadway Week

January 20 - February 12

January is one of the best months to see a show. Broadway Week brings discounted tickets and renewed energy to the theater scene, making it ideal for cozy winter nights in the city.

Click HERE to learn more!

Winter Jazzfest

January 8–13

Catch world-class jazz across Manhattan and Brooklyn with multi-venue shows and festival marathons — perfect for discovering live music in the heart of winter.

Click HERE to learn more!

---

Stay Connected

The Monthly Update - November 2025

Manhattan Real Estate in October: Resilient but Restrained

The Manhattan real estate market experienced a noticeable degree of stagnation in October—a cautious shift in a month that historically sees strong, robust contract activity. What’s behind the cautiousness? Is it mayoral election trepidation, the lingering “lock-in effect,” or perhaps the booming rental market drawing would-be buyers away from the sales market? The answer may be a combination of all of the above—and then some.

No matter who you're voting for, it's clear that the upcoming mayoral election is weighing heavily on everyone’s mind. According to Compass, open house traffic is down 30% over the past two weeks, suggesting that many buyers are holding back, waiting to see what happens after next week's election. At the same time, the media is flooding the public with emotionally charged messaging, portraying this race as a referendum on Manhattan’s future, with major tax implications, rezoning initiatives, housing proposals and more—all of which are presented as potentially game-changing (or game-ending), depending on your point of view.

As a result, many buyers have retreated to the sidelines, cautious and uncertain, waiting for the "storm" to pass. I can say that the city feels somewhat divided, or at least confused, with each side glued to its preferred news outlet, seeking reinforcement rather than perspective. And so, buyers hunker down, waiting to see what direction Manhattan will take after the votes are counted.

New York City has weathered countless elections, led by mayors with vastly different agendas—and yet, we’re still here. The skyline is still intact. Life goes on.

Once buyers emerge from their self-imposed caves and re-enter the market, they may return to a very different sales landscape than the one they paused from: lower inventory, easing mortgage rates, and a potentially stronger position for sellers who stayed the course through the uncertainty. Some in the industry are predicting a post-election resurgence in buyer activity. But, as always, we won’t know until the fog clears.

Still, the election isn’t the only factor at play in this market cooldown.

The persistent “lock-in effect”—where owners sit tight on ultra-low mortgage rates—continues to limit inventory. This year’s fall market has still yet to hit the 7,000 active listing threshold, staying 300–400 units shy of recent seasonal norms. This supply constraint isn’t helping, but it’s also not the only drag.

Arguably the biggest diversion of buyer attention has come from the extraordinarily strong rental market. Median rents in Manhattan hit a record $4,800/month back in May, one of the highest levels ever recorded. At the same time, persistently high mortgage rates (although more relief is supposedly around the corner) have pushed many would-be buyers into the rental pool instead of the ownership lane.

So now we enter the final stretch of the fall season. The Manhattan market, for all its noise and headwinds, can best be described as resilient but restrained. Prices are softening slightly, mortgage rates are fluctuating but overall are heading in the right directions, and buyers seem to be in a “wait-and-see” mode as the election approaches.

But many of us in the real estate industry believe that once the dust settles—as it always does—we’ll see a wave of re-engagement from sidelined buyers. Those who tried to time the market may find themselves rushing back in, looking to buy in a city that remains, for all its ups and downs, one of the most dynamic and desirable places in the world.

We’ve seen it before, and we’ll see it again. Another election will pass, and we’ll all still be here—living, working, and thriving in this amazing city called Manhattan (and Brooklyn).

---

Local Happenings

NYC Marathon

NOVEMBER 2, 2025

The TCS New York City Marathon is a 26.2-mile race through all five boroughs, uniting tens of thousands of runners and spectators in a citywide celebration of endurance and community.

Click HERE to learn more!

New York Comedy Festival

NOVEMBER 7-16, 2025

The festival will feature more than 100 shows and over 200 comedians, offering audiences a chance to experience some of the best in comedy from around the world. Tickets are now available for purchase.

Click HERE to learn more!

Macy's Thanksgiving Day Parade

November 27, 2025

A cherished New York City tradition held each Thanksgiving morning, featuring giant balloons, floats, marching bands, and live performances as it travels from Central Park West to Macy’s Herald Square.

Click HERE to learn more!

---

Featured Listings

---

Stay Connected

The Monthly Update - October 2025

Fall Market, Part Two: Holding Its Breath

As we enter the second half of the 2025 fall real estate selling season in New York City, buyers and sellers alike are closely watching the market. Interest rates, overall listing supply, macro- and microeconomic conditions, and the upcoming mayoral election are just a few of the factors influencing decisions. In many ways, the city’s real estate market is collectively holding its breath, waiting to see how things will unfold in October.

Fall is considered the second-busiest season, trailing only the spring market, which historically dominates NYC in total dollar volume, number of units sold, and seasonal duration. The spring market typically runs from February through June, offering a broader window for deals to be made. In contrast, the fall market is far more condensed. It begins around Labor Day in early September, when new listings hit the market, and runs through October and the first few weeks of November, when those listings typically convert into signed contracts. We are now at that inflection point. Just as October hits its stride, the holidays appear on the horizon and the season fades. This compressed timeline creates a heightened sense of urgency and intensity—for sellers looking to get under contract quickly, and for buyers eager to find and close on their dream home before year’s end.

Interest rates are always a crucial factor in real estate, but in fall 2025 they’re particularly impactful—especially in the “non-luxury” segment, defined as properties priced under $4 million. This segment has been slower to recover, largely because these buyers are more likely to rely on financing and are more sensitive to rising rates. In contrast, luxury buyers—those purchasing properties over $4 million—are often all-cash buyers, making them less affected by rate changes. Over the past two years, this divide has led to consistently stronger performance in the luxury market. That’s why the recent drop in mortgage rates has been a welcome development, particularly for non-luxury buyers. Between September 15 and 22, nearly 200 apartments went into contract—about 50% more than the prior week—giving the fall season a strong start. However, in the following week, from September 22 to 29, the market flattened somewhat, with 178 contracts signed, representing an 8.7% decrease from the week before. This early stretch of the fall season continues to show a Jekyll-and-Hyde dynamic, reflecting mixed momentum as the market finds its footing.

Supply is also playing a major role in shaping this year’s seasonal market. Inventory is rising, though it hasn’t yet reached the levels typically expected at the height of the fall season. Historically, fall peaks at around 7,500 active listings. Over the past two years, however, inventory topped out at around 6,900 and 7,300 listings, respectively. Many sellers remain hesitant to list, especially in what still feels like a lingering buyer’s market—a sentiment that has persisted since the post-COVID rebound of late 2021. Ironically, this reluctance has helped keep pricing relatively stable, even as demand has cooled. Fewer listings mean less downward pressure on prices, which has been a key stabilizing force over the past couple of years.

As we move deeper into the season, the big question becomes: after listings hit the market in September, how will buyers respond in October? Will we see the typical seasonal uptick in contract activity, or will external factors—such as economic uncertainty or political noise—dampen both supply and buyer motivation? The next 30 days will provide the answer.

Ultimately, the success of Manhattan and Brooklyn’s fall market in 2025 will likely hinge on the path of mortgage rates. If rates continue to trend downward into the late fall and winter months, they could be the catalyst for a strong season—and possibly a strong start to 2026. Lower rates will help buyers feel more confident and empowered to make offers, while also improving affordability. This creates a window of opportunity, particularly for buyers willing to act while inventory builds and competition remains low.

For sellers, success this fall will come down to pricing, presentation, and accessibility. A well-priced, well-presented, and easy-to-show listing will be the most competitive. And in the end, both buyers and sellers stand to benefit if interest rates continue their descent. Let’s go, Fall 2025!

---

Local Happenings

Pickle For PINK

October 8, 2025

This year, we’re back—and bigger! Pickle for Pink is returning for round two, and we’d love for you to join us. Whether you played, donated, or cheered from the sidelines last year, you were part of something powerful. Let’s build on that momentum and make this year’s impact even greater. Click HERE to learn more!

NYC Wine & Food Festival

October 15-19, 2025

The Food Network New York City Wine & Food Festival is NYC’s premier culinary event, now in its 18th year. Over five days, it brings together world-class chefs, tastings, dinners, and master classes in a new waterfront Seaport campus celebrating food, drink, and culture. Click HERE to learn more!

---

Featured Listings

---

Stay Connected

The Monthly Update - September 2025

The Luxury Market Vs. The “Non” Luxury Market:

A Market Split in Two

In Manhattan (and Brooklyn), the real estate market is showing cautious signs of improvement. Contract activity is up modestly, and buyers appear to be slowly returning. However, beneath those headlines lies a much more interesting picture. The dividing line isn’t about neighborhood or property type—it’s about price.

In Manhattan, the luxury market is generally defined as $4 million and above, while in Brooklyn it is $2 million and above. This year, Manhattan has seen several weeks and even months come close to breaking luxury market records—or surpassing them altogether. Just a few weeks ago, Downtown Manhattan recorded its highest-priced sale in its history, when the No. 1 contract featured the most expensive apartment or townhouse ever sold in the area. It surpassed the $80 million spent by Amazon founder Jeff Bezos in 2019 on a townhouse and two adjacent apartments, as well as the $72.5 million sale of a townhouse at 138 W. 11th Street in January 2024. The record-setting deal was for PH8 at 140 Jane Street, listed at $87.5 million.

The luxury market also came close to breaking additional records. During the week of May 19, 55 contracts were signed for properties priced at $4 million and above—marking the busiest single week in this segment since November 15, 2021. July also saw strength, with 29 contracts signed in a single week, making it the strongest third week of July since 2021, when 39 contracts were signed. For the month of June, 153 contracts were signed at $4 million and above—making it the third-strongest June since record-keeping began in 2006.

While the luxury market is breaking records, the rest of the market is having a much more subdued year. The main factor driving the division between the two markets is interest rates. In mid-2021, nearly 60% of Manhattan purchases were financed; today, 69% are all-cash. Since the Federal Reserve began raising rates in 2022, mortgage costs have risen sharply, adding hundreds of dollars per month to payments on apartment loans. This has cooled demand among financed buyers, while cash-rich luxury buyers remain largely unaffected and are capitalizing on developers and sellers eager to offload their properties.

One can see the divergence in contracts signed activity: In Manhattan, deals under $4 million have slowed, while transactions over $4 million have remained steady and in some months, (aforementioned) broke records. Looking at the division from a listing-supply perspective, Manhattan property over $4 million is down 16% year-over-year, while “non”-luxury inventory has grown 4%.

Pricing and price reductions also highlight the split: In Manhattan, listings under $4 million are seeing 11% more price cuts than a year ago, while luxury listings have seen 9% fewer. This suggests that sellers in the “non”-luxury market are feeling more pressure to adjust to buyers’ tighter budgets, while luxury sellers retain a bit more negotiating power—depending on other factors.

Price per square foot data offers perhaps the clearest view of this dynamic. In June’s resale condo market, Manhattan homes over $4 million saw a 3% year-over-year increase in PPSF, while those under $4 million were unchanged. Luxury properties are not only holding their value despite higher interest rates—they’re appreciating—while non-luxury homes are struggling to keep pace.

For buyers under the luxury threshold, this may present an opportunity. The somewhat softer demand and more price reductions could result in more motivated sellers and offer attractive value for buyers willing to accept today’s higher interest rate costs. There is also talk of future rate cuts that could help the “non”-luxury market rebound this fall and into spring. But for now, the luxury market is enjoying one of the strongest years on record.

---

Local Happenings

NYC Broadway Week

SEPTEMBER 4-17, 2025

Enjoy a special 2-for-1 ticket offer across nearly two dozen shows, making theater more accessible to audiences. The biannual event, held each winter and fall, gives theater lovers the chance to enjoy Broadway at a fraction of the cost. Click HERE to learn more!

The Feast of San Gennaro

September 11-21, 2025

The Feast of San Gennaro returns to Mulberry Street, filling Little Italy with festive lights, live music, parades, and Italian specialties. This 11-day celebration honors the patron saint of Naples while showcasing the heart and flavor of NYC’s Italian-American heritage. Click HERE to learn more!

---

Team News

Supporting Our Teammate Selene After a Devastating Loss

Our dear colleague and friend, Selene Varnel, and her family have suffered an unimaginable loss—their apartment was destroyed in a fire on August 15th. While we are deeply grateful that Selene and her young son are safe, the fire took nearly everything they owned.

A GoFundMe page has been established to support Selene and her son as they begin the process of rebuilding their lives. Any contribution—big or small—will make a meaningful difference as they replace essential items, find stability, and work toward recovery.

Thank you for your support.

View fullsize

View fullsize

View fullsize

---

Stay Connected

---

Featured Listings

The Monthly Update - August 2025

Preparing Your Property for the Fall Market

It’s not riveting, but it’s necessary. As the Manhattan and Brooklyn summer real estate markets scale back—true to historical patterns—we’re seeing fewer new listings, fewer properties going into contract, and more sellers pulling their homes off the market. Buyers and sellers alike are taking their final vacations of the season, which makes this the ideal time for sellers to reflect if their property didn’t sell during the spring market.

Now is the moment to make interior adjustments, consider price updates, and prepare to recalibrate, reload, and re-launch for the fall market.

As of this newsletter, there are roughly 6,500 listings available for sale in Manhattan. Expect that number to dip just below 5,500 by Labor Day weekend. August isn’t known for listing activity—but it can be a brief window for buyers to find opportunities. Sellers who stay on the market in August are often viewed as more serious—or more motivated—which can present an opening for savvy buyers to strike a deal before fall inventory floods the market.

Contrary to popular belief, September is one of the slowest months for properties to go into contract, but it’s one of the busiest for new listings. It’s important to remember: listings come on the market first, then they typically go into contract about 30 days later. More listings bring more buyers, but the surge in fall supply tends to hit right after Labor Day.

So, how do you get your property ready for fall?

It starts by shifting your mindset: think of your property as a product, not your home. Get the “product” ready for market with a fresh coat of paint, decluttering, and updated staging. Use furniture that appeals to the widest range of buyers—think WestElm, CB2, or even IKEA. You may not love it personally, but that’s not the goal. You want clean, tidy, neutral, and relatable. Buyers need to walk in and imagine themselves living there.

Once the property looks the part, the next (and arguably bigger) piece is pricing.
Pricing a new or relaunched listing right from day one can be the difference between 3 weeks or 3 months on the market. After analyzing thousands of Manhattan sales over several years, the results are clear — listings priced correctly from the start spent a median of just 31 days on the market and sold with only a 1.9% median discount from the original asking price. Overpriced properties lingered, often for months, and closed with far deeper discounts.

There’s a reason your property didn’t sell in the spring—and in markets like Manhattan and Brooklyn, pricing is everything. These markets are incredibly efficient, and if you’re overpriced, the market will tell you in 30 to 40 days. Be honest with yourself, and make sure your broker is honest with you. Consider pricing your property just below competing listings to create a sense of urgency among buyers.

If you’d like more information on how to prepare your home for the fall market—or if you know someone who’s looking for a new direction this season—please don’t hesitate to reach out. The Hoffman Team is always here to help you maximize the value of your most important asset.

---

Local Happenings

The U.S Open

The U.S. Open runs August 18–September 7 at the USTA Billie Jean King National Tennis Center in Queens. Don’t miss Fan Week (Aug 18–23) with free events and player practices before the main draw begins.

Click here for more details!

Rooftop at Pier 17

This August, The Rooftop at Pier 17 is bringing the energy with shows from The Fray, Cody Jinks, Fitz and The Tantrums, Andy Grammer, and more. With epic views and summer vibes, it’s one of NYC’s top spots for live music.

Click here for more details!

---

Listing Spotlight

---

Stay Connected

The Monthly Update - July 2025

New York City's FARE Act: How This New Law Might Affect the Future Sales Market

The new law: On June 11, the Fairness in Apartment Rental Expense (FARE) Act passed last year by the New York City Council went into effect. Essentially, the law shifts the responsibility of paying broker fees from the tenant to the landlord or the property manager who hires the broker. If a landlord or management company hires a broker to list an apartment for rent, they must pay the broker fee, not the tenant. However, if the tenant hires a broker, they pay the fee. In short, the new legislation shifts the responsibility of the broker fee to the person who hires the agent to represent them.

Incidentally, from my experience selling and renting real estate in Manhattan and Brooklyn for over two decades, I'm well aware that renters haven't always paid broker commissions. The fee shifted from landlord to renter depending on the climate of the current market. There have been very tight rental markets with very low vacancy rates, and in those markets, the renter generally paid the fee, but not always. Paying agent's fees, plus giving renters incentives, have always been tools landlords used to lure renters into leasing in their buildings. Free gym memberships, free move-in fees, and discounted rents if the lessee signed for multiple years are all used to incentivize renters. In softer markets with higher vacancy rates, the term “no fee” apartments is used to signify to the renter that the landlord is paying the agent's commission. 

So, the pendulum of the agent fee swings back and forth depending on the property, the landlord's need and market conditions. However, now, no matter the market conditions, the commission for renting is the responsibility of the person who hires the agent to represent them in the rental transaction. 

Fall out: Immediately after the FARE went into effect, rents jumped by about $745 a month on average. Landlords and managing agents, who now have to pay at least one month's broker fee to the agent for leasing out their property, will simply amortize that cost into the existing rent, raising the rent to cover the broker fee.

View fullsize

The average rent in New York City between January 1 and June 10 was roughly $4,750 a month. From June 11 to about June 27, the average rent climbed to about $5,495 (+15.7%) a month. It's worth noting that rent prices do tend to peak in the summer months, and most recent data shows average rent declining slightly in some reports.

How might this affect the sales market? Under current market conditions, rents were already increasing before the FARE Act. Now, they might grow even faster because managing agents and landlords need to pay their brokers. This situation could definitely affect sale prices, particularly if mortgage rates start to drop and the monthly average rent increases. 

One of my colleagues ran the numbers: She took an average one-bedroom apartment in Gramercy and a 20% down payment with an average HOA/common charges fee of $1,500 a month and an average sale price of $750,000. She calculated that the monthly cost would be about 10% less, on average, than the average rent for that neighborhood, which is currently $6,000 a month. It's an interesting argument; however, a fluctuating sale market and ever-increasing rental prices often change from week to week or month to month. 

We saw this a few years back when interest rates climbed to 8% and even 9%. The immediate result in the sales market was that it was no longer cost-effective for buyers to put 20% to 25% down on a purchase and pay substantially more in monthly costs than a rental might be. Especially when holding their down payment in a stock portfolio would offset any losses they would incur from "wasting money" on rent. In that scenario, many New Yorkers found their personal economics dictating they should not purchase real estate back in 2022 and 2023. But, everything is cyclical, and the buyers that weren’t purchasing back then and rented instead put a strain on the overall rental market and caused rental prices to start to increase. 

The FARE Act is going into effect in a tight rental market with less than 1% vacancy. Meanwhile, landlords are seemingly increasing rent prices to pay for the brokers representing their properties. This all adds up to an interesting few months ahead. Will rents continue to climb? Will previously reluctant buyers start to dip into the sale market for relief? No matter what the FARE Act fallout, we'll be watching this summer's real estate market with fascination!

---

Team News

The Hoffman Team Was Ranked #6 in NYC

We’re beyond honored to share that we’ve been named the #6 real estate team in New York City and #96 in the entire nation by The Wall Street Journal and RealTrends for 2024, based on closed sales volume.

This milestone wouldn’t be possible without the trust, loyalty, and support of our incredible clients and customers. Whether you bought, sold, referred, or simply believed in us, thank you. Your confidence in our team means the world.

Every deal is more than just a transaction — it’s a relationship, a chapter in your life story, and a commitment we don’t take lightly. We're so grateful to be part of your journey and to continue raising the bar together.

- Ranked #6 in New York City

- Ranked #9 in New York State

- Ranked #96 in the U.S.

- Ranked in the top 0.01% of all real estate teams in the U.S.

- $171,000,000+ closed sales volume in 2024

- 76 closed sales in 2024

---

Local Happenings

Macy's 4th of July Fireworks

JULY 4TH, 2025

Celebrate Independence Day with the nation’s largest fireworks display! The iconic Macy’s 4th of July Fireworks return to light up the NYC skyline with a dazzling show launched from barges along the East River. Enjoy synchronized pyrotechnics, a patriotic soundtrack, and prime views from Manhattan, Brooklyn, and Queens waterfronts.

Click HERE for more information!

FIAF Bastille Day Celebration

JULY 13TH, 2025

Celebrate French culture at NYC’s largest Bastille Day fête! Hosted by L’Alliance New York, this lively street fair features live music, can-can dancers, champagne tastings, French eats, artisan booths, and family-friendly fun across four festive blocks. Join thousands of revelers for a day of joie de vivre on the Upper East Side!

Click HERE for more information!

---

Listing Spotlight

The Monthly Update - June 2024

High-End Heat: A Look at May's Luxury Market Data

Manhattan’s luxury real estate market is surging. During the week of May 19th, 55 contracts were signed for properties priced at $4 million and above—marking the busiest single week in the segment since November 15th, 2021, when 67 contracts were signed. For context, that 2021 figure was the highest since tracking began in 2006. The total dollar volume for the week of May 19th topped $400 million—an impressive showing for a seven-day stretch and a clear sign that confidence has returned to the top end of the market.

Looking at the full month, May 2025 stands out as the strongest May for luxury contracts signed since the post-COVID rebound in 2021 and 2022. This month, 155 luxury contracts were signed—well above the 118 recorded in May 2024 and the 129 in May 2023. The strong performance confirms that high-end buyers are returning in force, bringing renewed energy to the Manhattan luxury market.

So far this year, the upper tier is clearly leading the way. Listings priced at $2 million and above are up 18% year-over-year, while listings under $2 million have increased by just 2.6%. And it’s not just a matter of quantity—the quality of deals is improving as well. The average luxury property is now selling at just 7% below the original asking price, compared to the 15%+ discounts seen in 2021. Days on market have also dropped significantly—from 174 days to about 100—indicating a faster-moving, more competitive environment.

Several factors are fueling this momentum. Chief among them is the performance of the stock market. The S&P 500 is on pace for its best May since 1990, gaining around 6% this month alone. When markets are strong, affluent buyers tend to feel more confident—and more liquid—prompting them to move capital into real assets like real estate, especially in globally resilient markets such as New York City.

Meanwhile, the ultra-wealthy continue to accumulate capital. The U.S. now has over 6 million millionaires, nearly 11,000 centi-millionaires (with $100 million or more), and more than 850 billionaires. A substantial share of that wealth is based in New York, which remains the world’s wealth capital with more than 380,000 millionaires.

Given this backdrop, it’s no surprise that the luxury segment is moving faster and commanding stronger interest from the purchase market. Today’s high-end buyers aren’t just shopping for trophy homes—they’re making strategic financial decisions. They’re parking capital, hedging against inflation, and placing long-term bets on the strength and resilience of New York City.

---

Local Happenings

The 43nd Annual Mermaid Parade

June 21st, 2025

Coney Island USA presents the 43rd Annual Mermaid Parade on. The parade begins at 1:00 PM, rain or shine. Known as the nation’s largest art parade, this vibrant celebration features imaginative costumes, hand-made floats, and an outpouring of creative expression. Spectators and marchers alike are welcome to join the post-parade festivities.

Click HERE for more information!

Free Movie at the Intrepid Museum

June 27th, 2025

Join the Intrepid Museum’s Summer Movie Series for a special screening of Pirates of the Caribbean: Dead Man’s Chest on the flight deck. Inspired by the museum’s new exhibition, Mysteries From the Deep. Doors open at 6:00 PM, with last entry at 8:30 PM.

Click HERE for more information!

---

Listing Spotlight

---

Stay Connected

The Monthly Update - May 2025

Are We Seeing a Seasonal Lull — or a Market Shift?

The Manhattan real estate market entered Q2 with solid momentum. Rolling 30-day contract activity crossed 1,100 — a benchmark not seen during any of the past three spring seasons. But by late April, that momentum began to slow, aligning with seasonal expectations and possible emerging economic uncertainties.

Spring breaks, religious holidays, and travel typically lead to a dip in activity this time of year. That’s part of the current story. But a few broader market signals suggest it may not be just seasonality at play.

Contract Activity: Seasonal Dip or Something More?

Only 206 contracts were signed in the final week of April, a roughly 16% drop from the prior week. While that figure is still above historical lows, it’s lighter than what’s typically needed to sustain a strong spring market.

This slowdown overlaps with Passover and Easter, which likely muted activity. Still, comparisons to 2023 — when regional banking stress pulled weekly contract signings down to 140 — suggest it’s worth watching whether this is a brief pause or a signal of a more cautious market.

Looking Ahead: Questions Remain

Heading into May, the key question is whether contract activity can rebound back well above 200 deals per week in a stable way. So far, there’s no sharp drop, but there's also no clear sign of acceleration.

As Noah Black of UrbanDigs recently noted, “We are in the midst of a shifting market. It’s too early to tell how far, how deep, or how severe the shift will be — but you can see the early stages of it developing in the data.”

Pricing data remains solid for now. Condo resale prices in March averaged $1,493 per square foot — likely reflecting contracts signed during a stronger stretch in late winter. As April closings are finalized, we expect that trend to continue in the short term, though there’s a risk that data will soften if activity remains muted.

Conclusion: A Transitional Moment

The Manhattan market appears to be in a transitional phase — not accelerating, but not sharply declining either. The coming weeks will help clarify whether April’s slowdown was a short-term seasonal pause or an early indication of broader market hesitation. For now, the data suggests a market that’s still active but more cautious as it digests new economic variables.

---

Bryant Park Spring Makers Market

Every Friday - Sunday in May

Shop local at the Makers Market by Urbanspace. More than 175 vendors will showcase art, jewelry, food, and handcrafted goods at Bryant Park from April 18 through June 1.

Click HERE for more details!

Kite Festival at Brooklyn Bridge Park

May 17th, 2025

Celebrate spring at the annual Kite Festival on Saturday, May 17th! Bring your own kite, purchase one, or craft your own on-site, and enjoy a day filled with hands-on activities, classic lawn games, and family-friendly fun. Free and open to all ages.

Click HERE for more details!

---

Stay Connected

The Monthly Update - April 2025

No Fooling! The Manhattan Real Estate Market is Gaining Strength

Before we dive into the Q1 highlights, let’s rewind to understand how we got here.

After Covid, Manhattan experienced one of its busiest markets — not because prices skyrocketed, but because deal volume surged. Fast forward to June 2022: The Fed’s actions to slow the economy sent mortgage rates from 3% to 6% and even touched 8% seemingly overnight. This shift instantly stalled momentum in Manhattan’s real estate market, which was already facing challenges pre-Covid. Since then, we've seen persistently low listing inventory and weak transaction volume. There have been occasional bursts of buyer activity, but Q1 2025 is showing the strongest recovery signs we’ve seen since mid-2022. To be clear: this is not a full-blown comeback, but it's the best market activity we’ve had in about three years.

The Volume Trap

For the past three years, Manhattan has been stuck in a low-volume market. Many sellers who bought in 2015/2016 have seen little to no price appreciation — property values and median price per square foot have been flat for nearly a decade. Naturally, sellers have been reluctant to list if it means losing money. Rising interest rates didn’t help either.

But here’s the good news: In the past month, more listings have hit the market, offering buyers more choices. At the same time, mortgage rates have been gradually falling and now sit around 6.25%. Many buyers can even secure rates below 6% through relationship banking or lender incentives.

A Notable Shift

For the first time in over a year, we’ve surpassed 1,000 contracts signed in a 30-day window. The big question now is: can this momentum last? Many experts are optimistic about Q2 2025 thanks to three key factors:

• Increased inventory

• Lower interest rates

• Strong local economic indicators — including record-setting Wall Street bonuses. This year alone, $47 billion will be paid out to executives, with the lowest bonus coming in at $244,000 — enough for a healthy down payment on a Manhattan one-bedroom. Bonuses are up over 31% compared to last year, giving buyers additional purchasing power.

Pricing is Critical

Despite the encouraging signs, this isn’t a market where sellers can price aggressively. Buyers remain highly sensitive to pricing. If a property is overpriced and lingers on the market for more than 120 days, sellers typically end up accepting about 9% less than the reduced asking price. However, if a property goes into contract within the first 60 days, that discount shrinks to just 2%.

In short, correctly pricing your property is more important than ever. While we’re finally seeing promising signs — more listings, more contracts, and a stronger buyer presence — it’s still a delicate recovery. Sellers who price smartly are the ones who will secure strong offers and close with confidence.

So yes, it may be the best spring market we've had in years, but it’s still not the market to get greedy.

---

Local Happenings & News

Compass says its Data Shows Benefits of 'Pre-Marketing' Listings

Compass is providing an early look at research into the impact of "pre-marketing" listings through the brokerage's Private Exclusives and/or Coming Soon channels.

Courtesy of Real Estate News

Easter Parade and Bonnet Festival

April 20, 2025

Every Easter from 10 AM to 4 PM, Fifth Avenue transforms into a vibrant spectacle as revelers don extravagant bonnets and festive attire for a tradition dating back to the 1870s. The best views are near St. Patrick’s Cathedral, but why just watch? Grab a bonnet and join the fun!

Click HERE to Learn More!

Macy's Flower Show

APRIL 27, 2025 - MAY 11, 2025

Macy’s 2025 Flower Show transforms imagination into a floral wonderland. Visitors will explore surreal gardens, drifting cloudscapes, and vibrant vistas, all bursting with dazzling installations and thousands of breathtaking blooms.

Click HERE to Learn More!

---

Featured Listings

---

Stay Connected

The Monthly Update - March 2025

Quick Market Update & Note About Condo vs. Co-op

February saw a steady rise in contracts signed, with deals rising 37.4% month-over-month at the time of this writing. Inventory is also steadily gaining ground and is only 3.2% less than it was at this point last year. Despite interest rates' pesky ability to stick around 7%, buyers are still aggressively putting property under contract, and the anecdotal water cooler chatter is that plenty of buyers currently have accepted offers or are negotiating deals that are yet to hit the contract-signed market. As it turns out, many industry experts, including bankers, real estate attorneys and real estate brokers, expect this spring to be busy! They like to call this a “liquid market," meaning many properties and deals will be changing hands, but it remains to be seen if “price action“ will come into play. Will prices start to rise, finally, after staying relatively flat for the past 72 months? Only time will tell.

Condo vs. Co-op

The allure of owning a high-end property in New York City has always been a trophy for many affluent (and not as affluent) people who are drawn here. But these buyers have choices: They can either purchase a co-op or a condo. Recently, the appeal of owning upscale condominiums has taken flight, leaving luxury co-ops in the dust. 

In January 2024, one seller sold his Park Avenue co-op for $7.4 million, or nearly 60% less than the original $17.7 million asking price. This sale emphasizes the point that co-ops are staying stagnant by way of resale and falling behind condos in resellability. 

Not long ago, co-ops were considered the gold standard for New York City living. The idea of purchasing a co-op on the Upper East Side's Fifth, Park or Madison avenues attracted some of the wealthiest families around the world. Lately, however, many buyers have preferred high-end luxury condos, which are more of a “downtown" thing. They’ve also elected a lifestyle with fewer rules and more modern amenities. Buyers from all over have been less enamored with the stately, old-world charm of uptown co-ops and have instead gravitated towards more “hip” downtown living in contemporary new-construction glass towers.

And the numbers don’t lie: For properties over $10 million, condos saw a 45% growth rate from 2014 to 2024, while co-ops only went up only 16%. High-end downtown condos in areas like Tribeca, SoHo and the West Village are now seen as the pinnacle of luxury living. And we can’t forget Midtown's Billionaire's Row, where addresses like 432 Park and 220 Central Park South have seen exponential growth over the last decade, leaving “stuffy” co-ops behind. A lot of this shift has to do with the changing demographics. Younger and affluent buyers are choosing a different lifestyle and view co-ops as “antiquated” and “old school.” 

So, what does this mean for the future of co-ops? Well, some cooperative buildings are getting hip to the game by loosening their restrictions and adding amenities to remain competitive with their rivals. However, most are still sticking to their guns by requiring 50% down and 5 times the price in post-closing liquid assets, all while forbidding subletting. Plus, the majority of co-ops still require voluminous board packages plus an in-person interview, which, frankly, often just hinges on the buyer's personality. 

In my humble opinion, and as a co-op ownersomeone who sells in many co-ops, I find it very  frustrating that these buildings have not yet become leaner, “friendlier“ and better prepared for the 21st century and beyond. Only time will tell if co-ops start to become more competitive. Still, for now, particularly in the luxury market, co-ops are on a downward trajectory while condo popularity continues to rise.

---

Local Happenings

Sarah Cahill:

The Future Is Female

March 8th, 2025

Join pianist Sarah Cahill for a six-hour marathon performance celebrating women composers from the Baroque era to today. From 2-8 PM, Cahill will perform over seventy compositions by female musicians, bringing to light brilliant works history has often overlooked.

Click HERE to learn more!

St. Patrick's Day Parade

March 17th, 2025

The celebration kicks off at 11am and continues until about 4:30pm. The parade route starts at 44th Street and travels up Fifth Avenue past the beautiful St. Patrick's Cathedral, ending at 79th Street.

Click HERE to learn more!

---

Lifestyle Tips and Tricks

The History of Home Staging

Learn how staging evolved from placing furniture in select rooms to the high-stakes art form it is today.

Courtesy of U.S. News

8 Interior Design and Renovation Tips from Experts

Define what you want to achieve with the renovation, taking your lifestyle needs and budget realities into consideration.

Courtesy of U.S. News

---

Stay Connected

The Monthly Update - February 2025

January 2025 in Review

Last month, I found myself constantly checking my news app, captivated by the significant changes unfolding within the federal government. While there's still much to be resolved and the impact on Manhattan and Brooklyn's real estate markets remains uncertain, I can share insights from the first third of the first quarter of 2025.

As we entered January 2025, one of the standout observations was the inventory level. At the start of the month, Manhattan had approximately 5,000 units on the market, marking the lowest Q1 start since 2016. Since then, inventory has been gradually increasing, though it remains about 7% lower than this time last year. Many industry experts anticipate a rebound to normal levels by March, but the current low inventory is already influencing both sellers and buyers.

Open houses have seen a resurgence, with buyers actively attending—an almost post-COVID novelty! We've even witnessed a few bidding wars. For instance, a three-bedroom on East 9th Street sparked competitive offers, and a two-bedroom on East 71st Street, relisted for $100,000 above the previous broker's price, sold for an additional $20,000. These developments highlight increased buyer urgency, likely driven by the limited inventory.

I regularly monitor the 30-day pace of buyer demand, and as we wrapped up 2024, it was about 20% higher than the previous year. This indicates a significant uptick in inventory under contract. Although January is typically a slow period for new listings and contracts, the in-contract rate is still approximately 8% higher than last year. This suggests that buyers are returning to the market, continuing the momentum from strong Q3 and Q4 numbers. It will be interesting to see how this trend evolves as more inventory becomes available, offering buyers additional choices.

In January 2025, interest rates have remained steady around 6.5%, with a slight dip closer to 6% as I write this newsletter. The Federal Reserve is not expected to adjust rates until mid to late summer, having opted to maintain the status quo at the end of last month without further commentary. While the Fed's plans can shift monthly, industry professionals remain cautiously optimistic as we progress through Q1.

---

Local Happenings

Hana House: AAPI Lunar New Year Market

February 1st

Celebrate the Year of the Snake at a festive market featuring AAPI vendors with traditional food, crafts, and live entertainment. Enjoy vibrant stalls, live music, and fun activities for all ages!

Click HERE to learn more!

NY Botanical Garden 2025 Orchid Show

February 15th

This year’s show transports you to Mexico, blending traditional and contemporary artistry inspired by the bold designs of architect Luis Barragán. Celebrate diverse ecosystems and cultures.

Click HERE to learn more!

---

Listing Spotlight

105 E 35th Street - $5,200,000

421 West 22nd Street #1 - $3,500,000

57 Warren Street #7 - $2,250,000

310 West 56th street #5A - $975,000

3 Hanover Square - $800,000

45 West 54th Street #10A - $550,000

---

Lifestyle Tips and Tricks

How to Stage Living Spaces When Selling Your Home

Potential homebuyers are looking for cozy living spaces where they can relax with family as well as entertain friends. Learn staging secrets that will make your living room, den or family room irresistible to buyers.

Courtesy of HGTV

7 Bathroom Design Trends to Watch in 2025

Consider these up-and-coming design trends if you're planning a bathroom makeover in 2025.

Courtesy of US News

---

Stay Connected

The Monthly Update - January 2025

A Glance Back And A Look Ahead

Happy New Year!

2024 started off much like 2022 and 2023 did — struggling with low transaction rates, mostly due to high mortgage interest rates. As we moved into spring, the weekly transactional rate never topped more than 240 units per week, when a typical spring market often reaches highs of 400 to 450 contract signings per week! However, last year's lower signed contract rates did remain steady throughout the year at about 200 contracts per week.

There was more trepidation than usual in our local markets leading up to the November elections. With a turbulent presidential election ahead, many anticipated a downturn in buyer activity. However, there was slight relief in August when interest rates briefly dropped to under 6%. The market then saw a steady increase in transactions through the end of the summer and deep into the fall market. As the presidential election came and went, interest rates hovered around 6% to 6.5%. At that time, many in the industry thought the real estate market would enter its typical fall slowdown into the holidays and the end of the year. However, transactional rates stayed strong compared to the past few seasons, and 2024's Q3 and Q4 saw a 30% to 35% increase in contract signings!

The luxury sector, the segment priced at $4 million and above, which many believe to be the bellwether for the rest of the market, recorded an 8.5% increase in listings going into contract compared to 2023. The upper echelon of the luxury market price at $10 million and above, often called the trophy listing sector, saw a 4% year-over-year increase in deals, with 278 contracts signed last year. As a matter of fact, 2024 ranked as the second-best year since 2006, when monitoring of the trophy listing segment began. Interestingly, the No. 1 year for trophy listings was 2021, the pandemic rebound year, when almost 400 trophy properties were listed and sold. Without question, the luxury market has been powered by huge gains in the stock market and the anticipation of a bump in bonuses this year. An interesting leading indicator of the luxury market can be found in the Federal Reserve data of 2020 when the total net worth of the top 1% in the U.S. was $30.3 trillion. By the end of Q2 of 2024, that number grew to $46.7 trillion, and the expectations for the elite 1% are even stronger for this year.

What can we expect in 2025? It's never an easy guess, but here it goes … Interest rates are not expected to go down next year, especially with the Fed indicating that prime rate cuts will be few and far between. However, with the expectation of the 1% getting wildly richer this year, mostly due to deregulation in the stock markets, there should be stronger activity over the next couple of years. Still, only time will tell how things play out in the Manhattan and Brooklyn 2025 sales markets.

For 2024, homes were still trading at around 2018 to 2019 price levels. There has been no real increase in overall property value since then. Of course, there are exceptions, and the luxury market did see a price increase of about 4% on average in 2024 compared to 2023. However, the asking price for standard New York City properties has remained flat. What we're looking for in 2025 is an increase in transaction rate, first and foremost. An increase in the volume of property going under contract will help the overall real estate market moving forward. Only then can we talk about how the increased volume might affect pricing.

Overall supply is another interesting facet to look at for the 2025 New York City real estate market. At the end of 2024, listing supply inventory was trending down, as it typically does towards the end of the year. But last year, particularly after August, there was less inventory than usual by about 500 to 700 units, depending on which month we look at. At the time of this article, there were 5,371 listings on the market. There's not going to be an increase in overall inventory until mid to late January. By the middle of the spring season, we should see inventory surpass 7,000 units. We have a long way to go before we reach that amount, but this is a good indicator of the health of the 2025 market to watch in Q1.

Other things to watch for in 2025 include the stock market, interest rates, overall listing supply and the rate at which buyers put property into contract. Those four leading indicators will determine the direction of the 2025 market, and we should see early in the year what direction the 2025 market will lead us. Other factors remain, of course, but I feel if the stock market is strong, interest rates continue to hover around 6% to 6.5%, and listing supply increases to a healthy amount, the Brooklyn and Manhattan markets will remain strong through the first half of 2025!

---

Local Happenings

NYC Restaurant Week

January 21 - February 9 2025

Savor the flavors of NYC during Restaurant Week! Discover exclusive lunch and dinner deals at hundreds of top restaurants across all five boroughs. Indulge in curated 2-course lunches, 3-course dinners, or both, and enjoy incredible cuisine at unbeatable prices.

Click HERE for more details!

Compass to Acquire Christie's International Real Estate

The $444 million deal brings the 8th-largest brokerage firm into the Compass fold and represents the brokerage giant’s first major move into the global market.

Courtesy of Real Estate News

---

Featured Listings

---

Stay Connected